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SOEPpapers on Multidisciplinary Panel Data Research at DIW BerlinThis series presents research findings based either directly on data from the German SocioEconomic Panel study (SOEP) or using SOEP data as part of an internationally comparable data set (e.g. CNEF, ECHP, LIS, LWS, CHER/PACO). SOEP is a truly multidisciplinary household panel study covering a wide range of social and behavioral sciences: economics, sociology, psychology, survey methodology, econometrics and applied statistics, educational science, political science, public health, behavioral genetics, demography, geography, and sport science.The decision to publish a submission in SOEPpapers is made by a board of editors chosen by the DIW Berlin to represent the wide range of disciplines covered by SOEP. There is no external referee process and papers are either accepted or rejected without revision. Papers appear in this series as works in progress and may also appear elsewhere. They often represent preliminary studies and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be requested from the author directly.Any opinions expressed in this series are those of the author(s) and not those of DIW Berlin.Research disseminated by DIW Berlin may include views on public policy issues, but the institute itself takes no institutional policy positions. This study addresses the difficulty in linking ethnic discrimination and integration outcomes of immigrants in empirical research. Many of the existing studies look at the relationship between perceived discrimination and integration, but most are based on cross-sectional data. We argue that perceived discrimination should not be taken as an accurate indicator of actual experiences of discrimination, but rather as a partly subjective interpretation of often ambiguous situations.Reported perceptions may thus not only affect but also reflect integration outcomes. This analysis is one of the few that is based on longitudinal survey data (from the German Socio-Economic Panel)and looks into both the determinants and the consequences of perceived discrimination. Results suggest that PD does in fact reflect both exposure to discrimination and attributional processes.Perceived discrimination is generally and substantially lower in more integrated individuals. More detailed analyses reveal that this link is correlational in nature and to some extent g...